Colombo, October 2025 —
Sri Lanka’s tourism industry continues to surge, surpassing 1.75 million arrivals year-to-date, signaling a strong revival after years of disruption. October began with more than 34,000 arrivals in the first week alone, driven largely by markets such as India, China, Russia, and the Middle East.
Tourism earnings have exceeded US$2.3 billion in the first nine months of 2025 — a 28% year-on-year increase. This performance has significantly contributed to foreign exchange inflows and supported the rupee’s relative stability amid global headwinds.
The hospitality, transport, and retail sectors have been the biggest beneficiaries of the rebound. Major hotel chains have reported occupancy rates above 80%, while new investments are being directed toward wellness tourism, cruise facilities, and high-end eco-resorts. The rebranding of City of Dreams Colombo — Sri Lanka’s first integrated resort — further illustrates the sector’s transition toward luxury and experiential travel offerings.
From an economic perspective, tourism’s multiplier effect extends beyond hospitality. It stimulates employment, supports SME supply chains, and drives rural income growth. Analysts estimate that every US$1 spent by a tourist generates US$3.20 in value across the broader economy.
However, sustaining this momentum will depend on maintaining stability, improving airport and transport infrastructure, and enhancing digital visa and safety systems. The government’s new Tourism Master Plan 2030 outlines a target of 3 million annual visitors and a shift toward sustainable, experience-based tourism.
As global travel trends lean toward cultural authenticity and eco-consciousness, Sri Lanka’s unique heritage, biodiversity, and Ayurveda-based wellness offerings position it competitively. The continued recovery in this sector reinforces its role as a cornerstone of the nation’s post-crisis growth story.
